Purchase Solution

Computing an Exponentially Smoothing Forecast

Not what you're looking for?

Ask Custom Question

The manager of the BP Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline from sales during the past 10 months.

Month Gasoline Demanded (gal)
Oct. 800
Nov. 725
Dec. 630
Jan. 500
Feb. 645
Mar. 690
Apr. 730
May 810
June 1,200
July 980

a. Compute an exponentially smoothing forecast using an alpha value of .30.
b. Compute an adjusted exponentially smoothed forecast (alpha = .30 and beta= .20).
c. Compare the two forecasts using MAPD and indicate which seems to be more accurate.

Please show all work to help me understand and the computed values of formulas in problems.

Purchase this Solution
Solution Summary

This posting provides a solution in Excel for computing an exponentially smoothing forecast.

Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Exponentially Smoothed Forecast, MAD, MAPD in EXCEL

    exponentially smoothed forecast using an symbol a which stand for a weighting factor referred to as the smoothing constant of a value of .30 Compute an adjusted exponentially smoothed forecast with a which stand for a weighting factor referred to

  • Expoentail smoothing

    Exponential smoothing continuously revises an estimate in the light of more recent experiences.

  • When using the exponentially weighted moving average for purposes of forecasting rather than smoothing

    90083 Exponentially weighted moving average for purpose of forecasting When using the exponentially weighted moving average for purposes of forecasting rather than smoothing A. the previous smoothed value becomes the forecast B. the current smoothed

  • Simple Exponential Smoothing

    The nomenclature "Exponential Smoothing" is derived from the fact that the Exponential Smoothing method consists of a series of exponentially weighted moving averages.

  • Forecast

    A 3-Month Simple Moving Average Forecast and an Exponentially Smoothed Moving Average Forecast has been performed in EXCEL.

  • Forecast Analysis

    c) Exponential smoothing, using a 0.1 smoothing factor and Feb. forecast of $69,000. d) Exponential smoothing, using a 0.4 smoothing factor and Feb. forecast of $69,000. e) Which technique provides the best forecast and why.

  • Time Series Analysis and Forecast

    Thus we conclude that optimizing the smoothing constant makes much of an improvement in the forecast.

  • Evaluate trendless data; forecasts to improve communciation

    When should exponential smoothing be used for data? Explain with an example. In exponential smoothing, what type of smoothing constant should be chosen for little smoothing compared with moderate smoothing?

  • Petroco Service Station: Exponentially smoothed forecast & MAPD

    Compute an exponentially smoothed forecast, using an α value of 0.30. b. Compute the MAPD. Dear student, please refer to the attachment for the solution. Thanks for using BrainMass.

View More Related Solutions